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Canada’s job market is facing growing pressure. As the U.S. trade war escalates, layoffs could soon surge across several industries.
On Friday, U.S. President Donald Trump hiked tariffs on Canadian goods by another 10%. This increase pushes some duties to as high as 50% for steel, aluminum, and copper. Canadian automobiles and parts now face 25%, while energy imports see a 10% tariff.
The hike applies to goods that fall outside the Canada-United States-Mexico Agreement (CUSMA). Compliant goods are still exempt, but many sectors are feeling the heat.
Union leaders sound the alarm
“We’re in a very difficult moment,” said Lana Payne, national president of Unifor. “We need to push back hard.” Unifor, Canada’s largest private-sector union, represents over 320,000 workers. Payne says a bad deal would be worse than no deal. Her message: maximize pressure on the U.S. and use tariff revenue to support Canadian workers.
Workers already paying the price
The Canadian Steel Producers Association reports over 1,000 jobs lost since March. Catherine Cobden, CEO of the association, warns the situation could soon spiral.
“With a 30% drop in production, this is not sustainable,” she said.
Many companies are still covering added costs without passing them to consumers. But that strategy, experts warn, cannot last forever. Job losses may be the next wave.
Business owners call for government help
Dan Kelly, head of the Canadian Federation of Independent Business (CFIB), also expressed concern. He says small businesses are running out of options. Some can no longer afford to retain staff. His warning: “No deal is better than a bad deal, but uncertainty makes future planning impossible.”
A call to invest in workers
Both Payne and Cobden urge the federal government to use revenue from retaliatory tariffs to protect Canada’s job market. “We need to keep people working,” said Payne. The trade war continues to ripple across Canada’s economy. The stakes are high, and leaders agree: supporting jobs must come first.
